The Memphis-Shelby County Airport Authority (MSCAA) Board of\nCommissioners voted Thursday to approve a balanced MSCAA budget for Fiscal Year\n2023 (July 1, 2022, through June 30, 2023).<\/p>\n\n\n\n
The $143.8 million Operations and Maintenance (O&M)\nbudget sets the fees and charges that the airlines pay to the Airport Authority\nand establishes spending authority for MSCAA operations. This budget does not\ninclude construction project expenditures.<\/p>\n\n\n\n
The MSCAA budget was unanimously supported by the Memphis\nInternational Airport\u2019s airline committee partners and approved by the Board\u2019s\nFinance and Administration Committee. MSCAA is self-funded and receives no\nlocal tax revenue from the City of Memphis or Shelby County.<\/p>\n\n\n\n
The FY23 budget represents a closer return to MSCAA\u2019s more\ntraditional pre-pandemic budgets, reflecting recent passenger levels that are\nmore than 90% of 2019 traffic.<\/p>\n\n\n\n
For the upcoming fiscal year 2023, operating revenues are\nprojected to be up by 26.9% compared to the previous year. This projected\nincrease in revenue is due to the recovery of air service from the effects of\nthe COVID-19 pandemic, which had significantly reduced air travel, parking and\nother passenger revenue at MEM. The increase in total revenue will be\nsupplemented with $14.4 million in federal Coronavirus Response and Relief\nSupplemental Appropriation Act (CRRSAA) funding and $3 million in surplus funds\nthat will carry over from the prior FY2022 operations. In addition, MSCAA\nincreased operating expenses and capital outlay by 14.6% in several areas that\nwere reduced or deferred due to cost control and cutting measures in fiscal\nyears of 2020, 2021 and 2022. FY 2023 personnel expenses increased 12.5% due to\nincreased salaries and wages, new positions and expected increases in\nhealthcare costs.<\/p>\n\n\n\n
This budget increases terminal rates and charges to $71.24\nper average per square foot compared to $69.99 per square foot in FY 2022.\nAirline terminal rental fees are calculated by dividing the terminal\u2019s net\noperating cost by the total rented space.<\/p>\n\n\n\n
Landing fees increased to $1.4372 per 1,000 lbs. of landed\nweight compared to last year\u2019s rate of $1.2723. The increase in landing fees\nwas expected and approved by airlines due to the planned opening and operation\nof the new $305 million Centralized Deicing Facility in the 2022\/23 winter\nseason. The addition of federal CRRSAA funding greatly reduced the pandemic\u2019s\nimpact on MEM rates.<\/p>\n\n\n\n
Terminal rent and landing fees comprise a small percentage\nof the airlines\u2019 overall operating costs at airports and do not have a\nsignificant effect on airfares.<\/p>\n\n\n\n
\u201cThe MSCAA staff has overcome many challenges that resulted\nfrom the pandemic,\u201d said Michael Keeney, Chairman of the MSCAA Board of\nCommissioners. \u201cWhile no organization is immune from the current effects of\ninflation, MSCAA continues to be financially sound. We continue to keep costs\nas low as possible for our airlines and tenants.\u201d <\/p>\n\n\n\n
Highlights of the FY 2023 MSCAA budget:<\/p>\n\n\n\n
The Memphis-Shelby County Airport Authority (MSCAA) Board of Commissioners voted Thursday to approve a balanced MSCAA budget for Fiscal Year 2023 (July 1, 2022, through June 30, 2023). The $143.8 million Operations and Maintenance (O&M) budget sets the fees and charges that the airlines pay to the Airport Authority and establishes spending authority for MSCAA […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[61],"tags":[],"class_list":["post-22158","post","type-post","status-publish","format-standard","hentry","category-tennessee"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/posts\/22158","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/comments?post=22158"}],"version-history":[{"count":1,"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/posts\/22158\/revisions"}],"predecessor-version":[{"id":22159,"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/posts\/22158\/revisions\/22159"}],"wp:attachment":[{"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/media?parent=22158"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/categories?post=22158"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/tags?post=22158"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}